Use the Table Below to Answer the Following Questions

question 131

Multiple Choice

Use the table below to answer the following questions.
Table 2.4.2
Production for one week by Sheila and Bruce

-Suppose John and Joe each have different production possibility frontiers;John specializes in cloth and Joe specializes in corn.John's island unexpectedly has exceptionally good weather,and suddenly he is twice as productive in the production of both corn and cloth.Select the best statement.

• A)This is an example of unemployed resources becoming employed.
• B)As a result, John will have an absolute advantage in both corn and cloth.
• C)As a result, it is possible that John and Joe will switch what they specialize in.
• D)There will be no change in what John and Joe specialize in, because John's comparative advantage has not changed.
• E)There will be a change in what John and Joe specialize in, because John's opportunity cost of production will have risen.

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Definitions:

Real GDP Per Capita

A measure that reflects the average economic output per person, adjusted for inflation, providing insight into the standard of living across different countries or regions.

Employment Growth Rate

The rate at which job creation increases in an economy over a specified period of time.

Population Growth Rate

The rate at which the number of individuals in a population increases in a given time period, expressed as a fraction of the initial population.

Financial Distress

A situation where a company struggles to meet or has difficulty paying off its financial obligations to creditors.